Examining Accounting Concepts from the Perspective of the Cooperative Movement

Abstract

This paper argues that interpretations of tax and financial accounting constructs express implicit ideological stances that can be deployed either to advance institutional reform or to protect the status quo. The study focuses on cooperative entities (CEs) that arose from mid-19th century workers’ efforts to create an alternative to investor-controlled businesses (ICBs). The paper contrasts CE interpretations of profits, dividends, and balance sheet classifications with those favored by ICBs, tax authorities, and financial accounting standard setters. Some critical accounting literature argues that regulators’ conservative ideological positions have incentivized CEs to revert to governance mechanisms that run counter to the movement’s initial aims. The manuscript discusses implications for bodies seeking to promote greater use of CEs in emerging economies, encourages accounting educators to give voice to both mainstream and alternative perspectives in the curriculum, and suggests opportunities for further research. Data Availability: All data are from public sources with disclosures provided by citation. JEL Classifications: G3; K2; L2; M4; N2.